In August, the market for single-family homes fell into negative territory as builders and buyers struggled with higher costs.
The National Association of Home Builders/Wells Fargo Housing Market Index dropped 6 points to 49 this month – its eighth straight monthly decline. Anything above 50 is considered positive. NAHB Chief Economist Robert Dietz said, “tighter monetary policy from the Federal Reserve and persistently elevated construction costs have brought on a housing recession.”
In spite of higher land, labor, and materials costs, about one in five builders in August described lowering prices in the past month to increase sales or limit cancellations. The average reported drop was 5 percent.
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